by Zac Perkins, CEO
My fifth year as Tri-County Electric Cooperative (TCEC)’s CEO began last month. I have to say, I hope it’s nothing like the first year when ice and snow hammered our service territory in 2017. Those two storms cost millions of dollars and caused extended power outages for many members. Despite these challenges, we’ve made great progress and have several accomplishments to celebrate.
Improve Reliability, Lower Maintenance Cost
Fortunately, before the 2017 storms we had recently updated our construction standards to help strengthen our electric system. We are rebuilding approximately 38% of TCEC’s system to the new standards, which will improve reliability and lower maintenance costs in the years ahead. We began rebuilding in 2019 and are ahead of schedule and under budget. We have replaced about 20,000 poles since starting Federal Emergency Management Agency (FEMA) mitigation.
In partnership with transmission owner GridLiance, the electric system is now looped. This increases reliability, helping avoid numerous transmission outages.
Sustainability and Cost Advantages from Diversified Power Supply Mix
We are incorporating renewable energy into our power supply without mandates. In 2019, 48.2% of our power was from renewables. Through November 2020, 53.5% of our power was from renewables.
In 2016, we executed a new wholesale power supply contract with Golden Spread Electric Cooperative resulting in a reduction in costs that will increase.
As part of the process, we negotiated room for a financial power purchase agreement for renewables outside of the wholesale power contract. We executed a wind farm agreement in 2017 that should lower TCEC costs over the next 20 years.
We also negotiated the potential for another 5 megawatts of community solar. We are looking into options to see if this will offer power savings.
Stronger Equity and Financial Position
We continue to improve the cooperative’s equity with careful rate structuring and cost containment measures. Our debt service coverage ratio is well within the required range.
More Efficient Organization, Optimizing Costs and Resources
We are working more efficiently, with fewer employees, and less overtime hours worked. As employees have retired, we have carefully scrutinized whether to fill those positions.
Technology
Cyberthreats continue to be a concern for the cooperative. We have increased cybersecurity efforts by implementing protocols and training that go beyond mandates.
Realize More Engaged and Satisfied Members
If you’ve participated in one of our member surveys, thank you for providing your feedback. Our member satisfaction score continues to increase. That is only made possible through the work of our employees and the engagement of our members. We will continue to enhance member communication and engagement.
State and National Leadership
TCEC is the only distribution utility that participates in the Southwest Power Pool. We participate in three statewide cooperative associations in Kansas, Oklahoma, and Texas. We interact with the Colorado Public Utilities Commission for the meters we serve in Colorado.
While I can’t predict the future, I can say I’m proud to be part of this progressive organization serving you, our members. We’re looking ahead and laying a strong foundation for the future.